Marketing Flashcards
What must businesses look for when deciding on a location?
Availability of land, labour, capital Infrastructure Gov and union loans and grants Distance to target market Source of raw materials Health and safety Competition Transport and information costs Telecommunications
What channel of distribution should a business use?
The product Reliability Distribution capabilities Finance Internet (e-commerce) Telesales Mail orders and delivery methods Newspaper and magazines
Name the 4p’s / marketing mix
Product
Place
Price
Promotion
Name the pricing strategies
Penetration pricing Destroyer pricing Promotional pricing Premium pricing Competitive pricing Price distribution Loss leaders Market skimming
What is penetration pricing?
The firm will set its price very low when it enters the market
The product and the business becomes popular
The firm raises its prices
What is destroyer pricing?
Prices are lowered so much that the competitors cannot compete
Competition is forced to leave the market
One the competition is out of the market the firm will raise its prices
What is promotional pricing?
Prices are reduced for a short period of time
This is to shift goods off the shelf
What is premium pricing?
When high prices for a product are kept high to create a high class image
The product is being marketed to people with a high income
What is competitive pricing?
Strategy that encourages businesses to charge similar or the same prices
The firms deliberately agree not to compete on price
Instead they compete through advertising and offering free gifts
What is premium pricing?
When high prices for a product are kept high to create a high class image
The product is being marketed to people with a high income
What is competitive pricing?
Strategy that encourages businesses to charge similar or the same prices
The firms deliberately agree not to compete on price
Instead they compete through advertising and offering free gifts
What is premium pricing?
When high prices for a product are kept high to create a high class image
The product is being marketed to people with a high income
What is competitive pricing?
Strategy that encourages businesses to charge similar or the same prices
The firms deliberately agree not to compete on price
Instead they compete through advertising and offering free gifts
What is price discrimination?
The business charges different prices for the same product/service at different times of the year
What is loss leaders?
Some businesses will sell their products at a loss
Aims to attract customers to the store
